Settlement lag

{
  "id": "MLC-T-INS-003066",
  "term": "Settlement lag",
  "field": "Insurance and risk management",
  "definition": "The delay between the date a claim is reported to the insurer and the date it is settled and paid in full. It differs from report lag, the time between the loss and its notification, and the two together give the total delay from occurrence to payment. Settlement lag is long for liability claims that go to litigation and short for simple property claims, and it shapes the pattern of paid loss development.",
  "url": "https://mlchart.com/terminology/insurance/settlement-lag/"
}